Price Wars: Return of the Rebates

According to USA Today analysts are expecting a return this summer season of big incentives by the Big Two and Chrysler to reduce inventory in advance of new models arriving in the fall. GM vowed not to return to its rebate-crazy ways, and so far has spent less this year on incentives per vehicle than either Ford or Chrysler. While Ford is currently spending $3,189 per vehicle and Chrysler $3,769, GM has managed to keep its per vehicle incentive spending at $3,050 thanks to its Value Pricing strategy. In comparison, Toyota is spending $978 per vehicle and Honda just $682.

But don't expect employee pricing to return anytime soon. Incentives will arrive couched in much more creative campaigns like the $1,000 fuel card deal GM is pushing in select markets where E85 fuel is available. Rising gas prices is also partly responsible for the high level of incentives that will be offered on large SUVs and full-size pickups in the coming months.

[Source: USA Today]

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